Government-led banks in the Philippines have been asked to release 25-30 billion pesos (601 to 721 million U.S. dollars) in loans this year to stimulate the country's economy, media reports said on Tuesday.
According to Finance Secretary Margarito Teves, himself a former president at Land Bank of the Philippines, the preferable release period for the loans to achieve maximum impact is within the first half of the year, Philippine newspaper Business Mirror reported.
He said Development Bank of the Philippines President Reynaldo G. David has also been similarly encouraged to more loan releases, particularly those related to infrastructure and social services projects and programs.
"Government-owned and controlled corporations, particularly the banks, have been asked to contribute to the broad pump-priming effort," Teves said.
Land Bank and Development Bank of the Philippines collectively contributed some 20 billion pesos (481 million dollars) to last year's pump-priming effort and both have been asked to extend more loans this year whenever possible.
According to Teves, some 60 percent of the year's 1.227-trillion-peso (29.5 billion-dollar) budget was to be spent in the first half to achieve the desired effect.
The balance of 40 percent would be released as quickly as possible in the second half.
It was important for government-owned and controlled corporations to conduct their spending in the first half, as the United States, the country's main trading partner, was seen to slide into recession and slow down Manila's export activities as well, said the finance secretary.
Source: Xinhua
|
Comment
Tell A Friend
Print Format
Save Article